I suffered a financial hardship in 2009 and lost my business. Prior to that I had a very good credit rating.
I purchased my NYC coop in 1992.
My coop is worth $1.2 million.
Both of my mortgages are with CitiMortgage.
The 1st Mortgage is $331,000
The HELOC is $485,000
I applied, and was approved for a Modification at the end of 2009.
My 3 month trial began in January 2010 and was to last for 3 months at which time, if I successfully made each of
the 3 payments Citi would let me know right at the end of that 3 month trial period whether I was approved or denied for a permanent Mod.
I made all 3 trial payments on time and when the 3 month period was over I never heard from Citi again.
So, for the next 4-5 months I kept calling to find out what was going on and was continually told that they were still in the process of deciding.
I asked the obvious question which was, I fulfilled my end of the trial, you have all of my info, you were supposed to give me answer at the end of the 3rd month, why do you need to continue to review me for another 5 months?
Then, out of nowhere, around August I recieved a letter telling me that I was declined for the permanent Mod because of either a lost or missing document.
I immediately called and the representitive that I spoke to looked at my file and said "this looks strange, as far as I can see everything required is in your file".
So, after speaking to his supervisor he got the case reopened.
Well I kept waiting for an answer and called regularly and was told that m yes, the case had been reopened but no decision had been made yet.
Now we are into the last quarter of 2010 and I am recieving default notices and when I call they tell me not to worry, the case is still reopened and these default notices are just computor generated and I should ignore them.
Then, in December I recieve a foreclosure notice telling me that an auction has been scheduled for Jan 12, 2011 at the county courthouse.
First I panicked then went into overdrive because NOBODY is auctioning off my home of 34 years.
So, acting "Pro Se" I got a "request for judicial intervention" and filed a "complaint" against Citi and was lucky to get a "left-leaning" judge who sided with me and issued a stay of the foreclosure that is still in effect today while I have pursued the lawsuit.
What makes my case so unusual is that...
1- I was foreclosed upon and I am the Plaintiff in the case and
2- I am FAR from being "underwater" as I still have plenty of equity in my home despite the 2 mortgages.
So, the judge ordered Citi to review me once again for a Mod in February 2012 which I was denied for due to
Just a word about the arrears...
I started of with about $3000 in arrears but because Citi did the usual bag of tricks (losing/misplacing documents etc) and dragged it on and on for over 2 years, I have now accumulated over $50,000 in arrears.
When I went back to court in June 2012 for a status conference to tell the judge that I was declined the Mod, I had just learned that the new HAMP 2 took effect on June 1 , 2012
So the judge ordered Citi to now review me under HAMP Tier 2.
I was denied the HAMP 2 after only one week despite the fact that I had enough verified income to pay their proposed Mod which was to add all of my arrears on top of the $331,000 that I owed and make it a 40 year fixed
Mortgage at 2%.
The monthly payment came out to $1219 per month.
My coop monthly dues are $1300 per month so the totoal of the 2 would be about $2500 per month.
Here is where the problem lies....
I recieve my income through doing short term rentals (7-10 days on average).
My monthly gross income is $4100.
The formula used under the HAMP 2 guidelines takes that $4100 and subtracts 25% from it which now makes it $3075.
Then, the next thing they do is take 42% of that $3075 which comes out to $1291.50 and this number has to be enough to cover the combined monthly new mortgage plus maintainence of $2500 which it does not come close to.
The tragedy here is that my REAL income of $4100 is way more than enough to cover that expense.
Also, nowhere in this process has the HELOC ever been mentioned. I was told that everything, as far as the Mod goes, is totally based on being approved for only the 1st mortgage Mod. then the HELOC follows automatically.
So, I am now at the point where I have until Oct 5th to decide whether to enter into the "Discovery" process regarding my original complaint about being wrongfully denied the original permanent Mod as a result of "incompetence" and "bad faith" on their part which will cost me more money that I can pull together.
I did hire an attorney since June 2012 who, when I had my initial consultation, told me that I had a good case.
But, now that we are facing the deadline to go ahead with discovery, he is all of sudden telling me that my original complaint is weak and I probably will not win the case if I pursue it..Quite a change in his opinion from the time when he wanted me to sign on as a client.
It just seems too unbelievable to me that someone with a $1.2 million home and a $330,000 mortgage with $50,000 in arrears is now on the path to foreclosure.
Just another point...my $330,000 loan is a 30 year fixed at 6.25%
I attempted to see if I could just get a simple refinance given the huge amount of equity but was told in no uncertain terms.. "noway, nohow" because of the damage to my credit over the arrears.
I deeply apologize for making this SO long but this is my story and there just wasnt any part of it that I could leave out.
Can someone please help me? There has to be someway to keep my home.